Solid ECN—Gold tests the 61.8% Fibonacci retracement level in today's trading session. The XAU/USD price is below the 50-period simple moving average, indicating that the bear market prevails. The technical indicators also suggest the bearish momentum should resume.
However, sellers must close and stabilize the price below the 61.8% Fibonacci level at $2,362 for the bear market to continue. If this scenario unfolds, the 78.6% Fibonacci level at $2,328 will be the next bearish target.
Conversely, the bear market should be invalidated if the price exceeds the 38.2% Fibonacci level at $2,408, a resistance backed by the 50-period SMA.
Solid ECN—Silver closed below the 50-period simple moving average in the daily chart, a robust signal for the current downtrend. However, the stochastic oscillator stepped into the oversold territory, meaning the U.S. Dollar could be overvalued against Silver, and the market might bounce from this point or consolidate.
Going short in a market saturated with buying pressure is not advisable, and the daily chart demonstrates the price is testing the lower line of the bearish channel. That said, we expect the XAG/USD price to consolidate near the key resistance level at 28.5, which should be monitored for bearish signals such as a shooting star candlestick pattern or a bearish engulfing pattern.
Furthermore, please note that if the silver price closes above the $29.4 resistance, the bearish outlook should be invalidated.
Solid ECN—The DAX 30 index struggles with the July 19 low at $18,148 resistance, which has held the selling pressure so far. Meanwhile, the stochastic oscillator has stepped into the oversold territory, indicating that the market could be saturated from the selling pressure.
From a technical standpoint, the primary trend is bearish. However, sellers must close below the $18,148 mark for the downtrend to continue. If this scenario unfolds, the July 2 low at $18,024 will likely be the next target.
On the flip side, the price will likely consolidate if the bulls (buyers) stabilize the price above $18,189 before the downtrend resumes.
Solid ECN—The EUR/USD currency pair moves sideways after it hit the 1.0825 low, below the 50-period simple moving average, signaling a bear market. However, other technical indicators suggest the bearish momentum is weakening, and the price could rise.
From a technical standpoint, for the bearish trend to resume, the EUR/USD price must dip below the immediate support at 1.0825. If this scenario unfolds, the 1.080 level will be the following supply zone.
On the other hand, if the bulls cross and stabilize the price above the immediate resistance at 1.070, which is backed by the 50 SMA, the bear market should be invalidated. In this scenario, the next bullish target will be the 1.090 resistance.
Solid ECN—The USD/JPY currency pair started to consolidate some of its recent losses in today's trading session, testing the 23.6% Fibonacci level at 154.2. The technical indicators suggest the current uptick momentum should resume to the 38.2% Fibonacci, a level coinciding with the descending trendline at approximately 155.68.
From a technical standpoint, a close above the 154.2 resistance could extend the consolidation phase to the 155.68 mark.
On the flip side, the downtrend will likely resume if the price dips below the immediate support at 153.3. If this scenario unfolds, the 151.9 key resistance will likely be tested.
Solid ECN—The EUR/USD currency pair returned from the immediate resistance at 1.087, trading at about 1.082. The technical indicators suggest the price might decline further. However, the bears have the immediate support at 1.082 to overcome.
From a technical standpoint, the downtrend will likely extend to 1.080 if the EUR/USD closes below the immediate support.
Conversely, if the bulls (buyers) exceed the immediate resistance at 1.087, the road to the next resistance at 1.090 could be paved.
USD/JPY: Bearish Flag and Candlestick Patterns Signal Trend Resumption
Solid ECN—The USD/JPY pair is consolidating inside the bearish flag, trading at approximately 153.6. The primary trend is bearish, and the price below the 50 SMA is proof of that. Although the technical indicators give mixed signals, the 4-hour chart has formed bearish candlestick patterns.
From a technical standpoint, the downtrend will likely resume if the price remains below the 155.3 key resistance. In this scenario, the 151.9 support could be tested. If the selling pressure dips the price below this immediate support, the 150.0 supply area will likely be targeted.
Gold Prices Poised for a Breakout: Key Levels to Watch
Solid ECN—Gold trends are currently testing the 50-simple moving average at approximately $2,408, which also serves as the immediate resistance level. Technical indicators suggest that the uptrend may resume, and XAU/USD is not overvalued.
From a technical perspective, if the price of gold climbs above $2,408, the next bullish target will likely be $2,431.
Conversely, if sellers stabilize the price below the immediate support level of $2,353, the decline could extend to $2,339.
Solid ECN—The EUR/USD downtrend cooled near the 1.080 resistance, while the awesome oscillator signals divergence. This development in the technical indicators means the market might step into a consolidation phase, or the trend might reverse from this point.
Additionally, the market is not oversold, as the stochastic and RSI hover above 30 and 20, respectively.
Therefore, we suggest retail traders wait patiently for the EUR/USD price to consolidate near the 50-period simple moving average. They should also monitor the 1.086 resistance area for bearish candlestick patterns or use a breakout strategy if the price exceeds 1.086.
GBP/USD: Golden Cross Signals Potential Trend Reversal
Solid ECN—The 50 and 100-period moving averages are forming a golden cross in the GBP/USD currency pair, suggesting a potential reversal from a bull market to a bear market. Additionally, the pair is trading within a bearish channel, with bullish candlesticks appearing weaker and smaller than their bearish counterparts.
However, the Awesome Oscillator indicates divergence, which may signal that the pair could consolidate before resuming its downtrend. In this scenario, the GBP/USD price might rise to test the 100-simple moving average, approximately at 1.291. Traders and investors should closely monitor the 1.2911 resistance area for bearish signals.
Conversely, the bear market outlook would be invalidated if the GBP/USD price breaks above the key resistance level at 1.2941.
Oversold AUD/USD: Key Levels and Potential Breakout
Solid ECN—The AUD/USD pair is consolidating within a narrow range between the immediate support at 0.651 and the immediate resistance at 0.656.
The stochastic oscillator has been deep in the oversold territory for four consecutive days, indicating a potential for the price to fill the 'fair value gap' around the $0.661 resistance. For this scenario to unfold, the price must close and stabilize above the $0.656 resistance.
Conversely, if the price dips below the $0.651 support, the downtrend will likely resume, with the next supply zone at the $0.646 mark.
Ethereum Bullish Momentum Slows at Critical Resistance
Solid ECN—Ethereum's bullish momentum eased near the July 23 low of $3,373, encountering active resistance. Technical indicators suggest a sideways market with a mildly bullish bias.
If the price closes above $3,373, it could allow bulls to reach the July 22 high of $3,561.
The July 27 low of $3,084 serves as the key support level for the current bull market.
Solid ECN—Litecoin dipped from $76.2, the June 29 high. Currently, the price is testing the $71.8 resistance, while the technical indicators suggest the bearish momentum could extend to lower resistance levels.
For the uptrend to resume, bulls must first maintain the price above the $71.8 resistance. In this scenario, the $76.2 level could be retested. Furthermore, if the buying pressure exceeds the July 29 high, the next ceiling will likely be the $80 psychological level.
On the flip side, if the LTC/USD price closes and stabilizes below the immediate resistance at $71.8, the next bearish target could be $69.7.
Solid ECN—Silver price bounced from $27.3 as expected. The stochastic oscillator signaled oversold conditions, warning traders about this pullback. Currently, the XAG/USD bulls are testing the 100-period simple moving average as resistance. Meanwhile, the technical indicators suggest the primary trend is bearish, but the price might consolidate to upper resistance levels.
If the bulls surpass the immediate resistance at $28.5, the pullback will likely target the next demand area at approximately $29.4.
Conversely, if the silver price dips below the immediate support at $28.1, the current uptick trend should be invalidated, and the bears will likely test the recent lower low at $27.3.
Solid ECN—The NZD/USD pair is consolidating near the 50-period simple moving average. Meanwhile, the stochastic oscillator stepped into the overbought territory, signaling a sell.
Furthermore, the bearish momentum will likely resume if the price remains below the 50 SMA.
Solid ECN—Oil price returned from the $74.2 low when the stochastic oscillator signaled an oversold market. As of this writing, the pair trades at about $76.7, above the immediate support at $75.7. The technical indicators suggest the current uptick momentum should resume. Interestingly, the awesome oscillator adds to this bullish speculation.
From a technical standpoint, if the oil price holds above $75.7, the price will likely rise to the key resistance area at $78.1, backed by the 75-period simple moving average.
Conversely, if the bears (sellers) drive the price below $75.7, the $74.2 key resistance will likely be initially tested. Furthermore, if the selling pressure exceeds $74.2, the next support area will be the $71 mark.
Solid ECN—The EUR/USD price returned from the 50-period simple moving average, and as of writing, the pair trades inside the bearish flag at approximately 1.081. The technical indicators suggest the primary trend is bearish and should resume.
From a technical standpoint, the price will likely test the 1.079 level in today's trading session. If the selling pressure exceeds 1.079, the next supply zone will be the 1.077 mark.
Conversely, the bear market should be invalidated if the EUR/USD price exceeds the key resistance level at 1.086, backed by the 100-period simple moving average.
Solid ECN—WTI Crude Oil price reached the $78.1 key resistance, a demand zone backed by the 75-period simple moving average. Interestingly, the robust bullish momentum eased as the stochastic oscillator stepped into the overbought territory.
The technical indicators suggest the primary trend is bullish, but the oil price could be overvalued in the short term. Therefore, it is likely that the oil price consolidate near the immediate support at $77.1.
Conversely, the uptrend resumes if the bulls close and stabilize the price above $78.1. In this scenario, the next barrier will be the $79.2 mark.
Solid ECN—Gold is in a bull market, testing the July 17 low at $2,451 as resistance. The technical indicators suggest the market is oversold, and the price might consolidate before the uptrend resumes.
However, the bears have tested the July 24 high at $2,431 today, and as a result, the price bounced, and the uptrend resumed. Therefore, if the XAU/USD price remains above $2,431, the next bullish target will likely be the July 17 high at $2,483.
Conversely, a dip below $2,431 could trigger the consolidation phase, extending to the next support level at $2,402.
Solid ECN—The oil price dipped to $75.7 after breaking $78.1 with a long bearish candlestick. Currently, the price is bouncing from the key resistance at $75, while the awesome oscillator has flipped below the signal line.
There is no significant pattern on the WTI Crude Oil 4-hour chart, but the 1-hour chart shows a hammer candlestick and a MACD cross, indicating bullish momentum.
The price is likely to test the resistance at $75.7. However, if it dips below $75, the bullish outlook will be invalidated, potentially leading to a retest of July's low at $75.1.
